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Ed Yardeni: Earnings, Inflation = Room To Run For S&P500
Sam Stovall wrote something similar for S&P. Add CPI to the S&P forward PE ratio (based on operating earnings), and the average over time is 20. Frothy is one std dev above. Bargain is one std dev below.
Right now, we are almost exactly 20. Fairly valued. Assuming things get euphoric before a top is set, we have a ways to go.
@ I forgot, the Linkster wants to welcome you to the MFO Discussion Board. In my opinion, you get more news, views, insights, and research involving Mutuals Funds and ETFs than any other single website. Regards, Ted
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Sam Stovall wrote something similar for S&P. Add CPI to the S&P forward PE ratio (based on operating earnings), and the average over time is 20. Frothy is one std dev above. Bargain is one std dev below.
Right now, we are almost exactly 20. Fairly valued. Assuming things get euphoric before a top is set, we have a ways to go.
Regards,
Ted